MSN – by Chidinma Iwu
In the world of money, you likely have seen and heard that cryptocurrencies, the blockchain, and other digital assets are the future. But where do these new moneys and digital assets stand in terms of real value?
Since the established adoption of Bitcoin, the most widely used cryptocurrency in the world, in 2017, the financial sector has found itself in the face of evolution. As a wealth of other cryptocurrencies and other digital assets, like NFTs, springs up, consumers are being offered entirely new ways to own and use money, moving beyond banks and traditional financial institutions.
“As any asset class, digital assets are at the mercy of the asset market in general. We used to think that crypto would be independent of the greater economy, and therefore would be a good way to hedge against asset losses,” Alex Jimenez, a financial consultant and managing principal of EPAM Systems, a digital business consulting firm, tells Shondaland. “Clearly, that isn’t true. As worldwide markets struggle, ultimately digital assets as a class will grow, and stability will be up to the general market.” He says we are currently seeing the vulnerability of cryptocurrencies. If dollars, euros, and other traditional moneys are affected by things like inflation, so should we expect cryptocurrencies to be.
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